The Following Items Are Taken from the Financial Statements of the Postal

question 168

Multiple Choice

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: $$\begin{array} { l r } \text { Accounts payable } & \$ 18,000 \\\text { Accounts receivable } & 11,000 \\\text { Accumulated depreciation - equipment } & 28,000 \\\text { Advertising expense } & 21,000 \\\text { Cash } & 15,000 \\\text { Common stock } & 42,000 \\\text { Dividends } & 14,000 \\\text { Depreciation expense } & 12,000 \\\text { Insurance expense } & 3,000 \\\text { Note payable, due 6/30/16 } & 70,000 \\\text { Prepaid insurance (12-month policy) } & 6,000 \\\text { Rent expense } & 17,000 \\\text { Retained earnings (1/1/15) } & 60,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 133,000 \\\text { Supplies } & 4,000 \\\text { Supplies expense } & 6,000 \\\text { Equipment } & 210,000\end{array}$$ The current assets should be listed on Postal Service's balance sheet in the following order:

• A) cash, accounts receivable, prepaid insurance, equipment.
• B) cash, prepaid insurance, supplies, accounts receivable.
• C) cash, accounts receivable, prepaid insurance, supplies.
• D) equipment, supplies, prepaid insurance, accounts receivable, cash.

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Definitions:

Psychological Counseling

A form of therapy aimed at addressing mental health issues and improving an individual's emotional well-being through dialogue and various psychological techniques.

Express Ratification

The formal affirmation or approval of an act or contract, making it valid and binding.

Age Of Majority

The legal age at which an individual is considered an adult and can engage in activities such as voting and signing contracts.

Entered Into

Refers to the act of formally agreeing to or engaging in an agreement, contract, or arrangement.